CFO Magazine
An exclusive article by CFO Magazine references a The 2018 M&A Report: Synergies Take Center Stage about the trends that have moved synergies to the center stage in deal-making and how dealmakers and investors have responded. According to the report, synergies, which historically served to augment the case for an acquisition, have now taken center stage, becoming the “make-or-break” element of buy-side cases. The report also finds that there is increased skepticism among investors about companies’ ability to deliver on the higher synergies they announce. In order to afford their deals, acquirers now have to give away a greater share of total synergy value, in the form of higher transaction prices.
